Vietnam: People’s Committees of provinces and cities are allowed to issue bonds whose face value are VND 100,000

Le Hai

09:12, 07/07/2018

This is a featured content of Decree No. 93/2018/ND-CP of Vietnam’s Government providing for provincial-government debt management, which comes into effect at the beginning of July. According to this Decree, issuance of municipal bonds is a form of borrowing for the provincial government to get loans for making up its budget deficit and paying outstanding principal amounts.

To issue bonds, the Provincial People's Committee shall submit a written request to the Ministry of Finance for opinions about terms and conditions of municipal bonds, enclosed with the following documents:

- The scheme for issuance of municipal bonds;

- The Resolution of the Provincial People’s Council approving the provincial government’s budget estimate, and borrowing and repayment plan of the year in which municipal bonds will be issued, and medium-term public investment plan;

- The provincial government’s annual borrowing and repayment plan.

In addition to issuing bonds, other types of borrowing are as follows: Borrow funds on-lent from the Government’s ODA loans or foreign concessional loans; get loans directly from domestic financial institutions or credit institutions; borrow money from state funds; get loans from financial reserve fund.

More details can be found in Decree No. 93/2018/ND-CP of Vietnam’s Government, which takes effect from July 01, 2018.

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